Bernanke: Growth More Subdued

BY

Federal Reserve Chairman Ben Bernanke told Congress Wednesday
that the economy has emerged from its anemic spell, but overall
growth for the year will be lower than expected. Inflation remains
the chief concern, he said.

Delivering a midyear Fed economic report to Capitol Hill, Bernanke
struck a somewhat cautious tone. He suggested that the economy appears likely to expand "at a moderate pace" over the second
half.

Still, the Fed chief told the House Financial Services Committee that growth this year will be a bit slower than the Fed projected in
February. The inflation forecast, however, wasn't changed. It calls
for prices other than food and energy to edge lower.

Against this backdrop, the Fed is likely to leave interest rates where they are through the rest of this year.

For just over a year, the Federal Reserve has held a key interest
rate at 5.25 percent, providing a period of stability to borrowers.
Before that, the Fed had boosted rates for two years to fend off
inflation.
Bernanke took pains Wednesday to hedge the Fed's bets and
outline risks to the economy.

One risk is that energy and commodity prices could continue to rise sharply, boosting the prices of lots of other goods and services and
thus spreading inflation through the economy.

The Fed "has consistently stated that upside risks to inflation are its predominant" concern, Bernanke said.

Gasoline prices, which peaked in May, receded somewhat in June
and are now up past $3 a gallon.

Another risk is that the housing slump could turn out worse than
expected, sapping consumer spending and possibly causing overall
economic growth to be weaker.

The housing market will remain sluggish for some time, partly
because of some now tighter lending standards and the recent rise
in mortgage rates, Bernanke said.

Even if the demand for housing were to stabilize somewhat, the
pace of new home building will probably fall as builders work down
excess stocks of unsold homes, he said.

"Thus declines in residential construction will likely continue to
weigh on economic growth over coming quarters, although the
magnitude of the drag on growth should diminish over time,"
Bernanke said.

Bernanke also outlined efforts by regulators to deal with problems
in the market for risky mortgages. Those are mortgages made to
people with spotty credit histories.

Foreclosures and delinquencies for these "subprime" mortgages
have spiked. Some big subprime lenders have been forced out of
business.

Borrowers and lenders have been clobbered by rising interest rates
and weak home values. Congress has blasted the Fed and other
regulators for not doing enough to crack down on lax lending
standards, which had contributed to the problems.

"Rising delinquencies and foreclosures are creating personal,
economic and social distress for many homeowners and
communities -- problems that likely will get worse before they get
better," Bernanke said.

To better protect consumers, the Fed is looking at ways to
improve mortgage disclosure and ways to curb unfair or deceptive
lending practices. It also is encouraging lenders to work with
troubled homeowners.

In new economic projections, the Fed expects the economy to
grow between 2.25 and 2.50 percent, as measured from the
fourth quarter of last year to the fourth quarter of this year. That's
lower than the old forecast of 2.5 percent and 3 percent
"Core" inflation, meanwhile, should increase by 2 percent and 2.25 percent this year, the same as the previous projection. Core inflation excludes the more volatile categories of energy and food.

The unemployment rate -- currently at 4.5 percent -- could rise as
high as 4.75 percent this year, which would still be considered
relatively low by historical standards. That's also unchanged from
the Fed's old forecast.

JKL

thanks

hwind33

老大翻译下啊

BY

初步來说 Bernanke 的發言对金价利好。

hwind33

谢谢
真郁闷了

jingyu

老大上看多少?

珍2006惜

BY兄能告诉我有些相公黄金信息的网站吗?谢谢